Vanuatu, an island nation in the South Pacific, has long been opposed to digital currencies, despite a wave of pro-Bitcoin sentiment in most smaller countries. However, as one local expert points out, the country has caved into local digital currency lovers’ campaigning. As a result, digital currency issuance, trading, and custody are now permitted in Vanuatu.
Vanuatu is well-known for many things, including being a scuba diving paradise. However, it is not well-known for its use of digital currency. The country has been quite strict in its approach to digital currencies, whether as a trade commodity or as a payment method. Any company registered there risks losing its license if they even mention them.
However, as one expert recently revealed, the country’s position has shifted. In an interview, Tal Itzhak Ron, the law firm Tal Ron, Drihem & Co., stated that the government just quietly altered its legislation to allow digital currencies.
In an interview with Finance Magnates, he stated that Vanuatu modified the Financial Dealers Licensing Act on July 22. A provision in the amendment provides for the distribution, secondary trading, custodial storage, and supply of investment advice or other services in the context of digital assets.
The amendment has been a long time coming for Vanuatu’s digital currency enthusiasts. Some, like Ron, have been working hard to see the day when everyone in the island nation might freely possess and exchange digital currencies. His firm has been heavily pressing for the change in regulations, as he confessed to the publication.
According to the expert, Vanuatu’s legislation is comparable to that of Gibraltar, which permits residents to create their digital currencies. This might open up a big market for international corporations looking to establish operations in Vanuatu and serve a global audience.
Vanuatu has been attracting many digital currency-related persons, sometimes for the wrong reasons, even though it has prohibited them. As a result, the country has become a hotspot for those looking to escape taxes after acquiring millions in digital currencies, to the point that there is a corporation whose primary service is obtaining Vanuatu passports for Bitcoin millionaires.
Not only that but there’s more. Scammers have also taken advantage of the simplicity with which Vanuatu passports can be obtained. For example, according to reports, the two brothers who started the $3.6 billion Africrypt scam in South Africa bought a Vanuatu passport.